The New Every Two program offered customers $30
to $100 toward the purchase of a new phone every two years. Current customers
will be able to use this discount one more time within 6 months of reaching 20
months into their contracts. New customers will not be offered the perk.

Verizon's early upgrade program -- perhaps even more attractive than New Every
Two -- offered “new-customer” pricing on devices 13 months into their contract.
Customers will now have to wait a full 20 months before they are offered the
upgrade price.

"The longer you can get customers to go between upgrading their phones,
the stronger the profitability for the carrier," Michael Hodel, an analyst
for Morningstar, told SmartMoney. As evidence, Hodel points to last
year's iPhone 4 release, when AT&T allowed many subscribers to upgrade
early, sometimes even waiving the $18 fee. This resulted in shrinking profit
margins for the carrier.

Verizon, on the other hand, can count on a number of AT&T iPhone users to
jump ship for its CDMA version of the device -- without having to offer much
extra incentive.

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